I work for a startup who have recently run into cash flow issues. They were banking on investment coming in which stalled due to the current economic situation. They laid off 4 people last week and then told us yesterday that they cannot make payroll for September. They also said salary for October to December will be reduced until they figure out what's happening.

Someone asked if they could make up the September pay at a later date and they said they would like to but cannot promise.

This is obviously a very difficult situation and a majority of us don't even have a stake in the company. Is this even legal? I have bills to pay and am the sole earner in my family.